A new approach to money management. Ralph Fins
Investing is a more complex process than most beginning investors realize.
Many believe it's enough to have money and that investing in something profitable is a breeze, but experience shows that more than half of investments end in losses.
Therefore, capital management skills are crucial; only diversification, insurance, and risk management can help you make a truly profitable investment.
Ralph Finks's book, "A New Approach to Money Management," can be a helpful resource in this regard.
It's dedicated to creating a structured investment portfolio; the author collaborated with employees of a well-known rating company in writing the book.
New methodology In the first chapter, the author explains the essence of a new methodology used to identify the most attractive investment targets. He provides comparisons with previously used approaches.
Laws of growth, utility, and final flows – how do population growth indicators influence investment choices, and to what extent is the risk justified in terms of utility?.
Conditions, probability and correlation – probability correlation theory, assessment of compatible probabilities.
New model – mathematical optimization and its methods, objective function, practical application in creating an investment portfolio.
Capital Management for Professionals This chapter attempts to put everything described above into practice. Particular attention is given to portfolio formation, insurance, and loss management.
The book leaves an ambiguous impression: on the one hand, you can find a lot of interesting information in it, on the other, everything is described rather complexly and you have to think about every line.
To be honest, I would have chosen a different money management textbook for myself, but that's just my personal opinion.
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